In the fourth generation war fare against the largest country in the world west has unleashed its latest weapon. What is interesting is, if someone follows the main stream media (msm), it would appear to us as a simple case of devaluation of Ruble against the major currencies. Msm don’t mention about the ongoing pseudo war, which is without tanks and soldiers. In a bizarre way the arrogant west has unveiled its predatory face against Russia after its botched policy failure and complete disaster in Ukraine. Currency war with Ruble is its latest episode to it. What is the aim of it? That the Russians will lose faith in Ruble, lose their savings, running to the banks, like 1998, and a mass protest against the current government. What is the reason for all this? That the west couldn’t realize its dream in Ukraine, which rather becomes a nightmare now.
January 2015 is the timeline for Eurasian Economic Union to start its journey. Russia also decided to float its currency in the forex market to compete with the major currencies which is 5 Trillion USD by volume a day. Ruble is only one percent of the total trade of forex in volume. Russia also aims to move higher in the list of major currencies with this free float. In these pre texts west wanted to back stab the Ruble to gain multiple wins, hit the Ruble directly, tamper the EEU launch, foment unrest in the country and satisfying its ego of losing in Ukraine.
However, the way Russians are responding is very interesting. Russian Central Bank head is independent in its decisions. Central bank rules were made during the disastrous Yeltsin era following the western dictates. Those days it was the norm and Russian central bank is still following the guide book methods in crisis like this. First they started burning billions of savings to block the downhill journey of Ruble, they failed to stop that. When Ruble hit rock bottom and lost 50% of its value they raised interest rate from 10.5 to 17%! Even before the current crisis there was lot of discussion in Russia about high interest rate which is detrimental to investment and business creation in Russia. This rise of interest rate may be temporary, but they have gone by the book, as their masters told. Stabilizing Ruble and creating confidence is now a major headache for Putin, along with the sanctions, low oil price, which is another catalyst of the plunge.
This is a war in all fronts. As one western leader openly boasts about ongoing ground offensives in Ukraine, and now the fresh currency offensive against Russia. Russian central bank, government and its intelligentsia need to be very prudent and alert in the days to come to steer it through a very stormy sea.